The crypto market holds its breath as Donald Trump's "liberation Day" approaches. Bitcoin, Ethereum, and XRP are under intense pressure, with traders closely monitoring key levels. Are these cryptos poised to skyrocket or face a sharp decline?
Cryptocurrency prices rose this week as investors welcomed news that Trump’s “Liberation Day” would not be as severe as anticipated. Media outlets like Bloomberg and the Wall Street Journal reported that retaliatory tariffs would be more targeted. Previously, Trump had threatened to impose general tariffs on all goods.
Instead of general tariffs, Trump will exclude certain sectors like semiconductors and automobiles. This news about “Liberation Day” explains the rise in stock prices and cryptocurrencies on Monday. Dow Jones futures surged by 350 points, while Nasdaq 100 and S&P 500 futures rose by over 1%. As cryptocurrency prices are correlated with U.S. stocks, they followed this upward trend.
“Liberation Day” comes as economists warn that the U.S. economy could contract in the first quarter. In its latest decision, the Federal Reserve cautioned against the risk of stagflation, characterized by low GDP growth and high inflation.
Firstly, the Bitcoin price has risen in recent days, going from a low of $76,485 on March 11 to $87,500 today. Although this rebound is positive, indications show that a bullish breakthrough has not occurred yet. The BTC price remains below the 50-day Exponential Moving Average (EMA). In trend analysis, a bullish breakout is typically confirmed when an asset moves above a key moving average.
Source: CoinGecko
Regarding the Ethereum price, it has tested the key resistance level at $2,000. While this is also a positive sign, the coin also remains below the 50-day EMA. It has not yet broken the significant resistance level at $2,138, the neckline of the triple top pattern at $2,130.
Source: CoinGecko
Therefore, there is a risk that the current rebound of ETH is part of a break-and-retest pattern, a popular continuation sign. If this is the case, the coin may resume its downtrend before the April 2 “Liberation Day.” In such a scenario, the target will be the year’s low at $1,763.
Lastly, the XRP price also saw a rapid recovery after the conclusion of the Ripple vs. SEC lawsuit last week. This rebound is significant as it crossed the $1.9635 level, the neckline of the head and shoulders pattern. A rise above these levels will signal further gains, potentially up to $5.
Source: CoinGecko
While the crypto market had a good start to the week, investors should remain cautious ahead of Trump’s “Liberation Day.” Although BTC, ETH, and XRP show positive signs, they are still below key resistance levels. A bullish breakout has not been confirmed yet, indicating risks of short-term correction.
Investors will need to closely monitor the situation in the coming days. For those looking to prepare for “Liberation Day” now, it is possible with Weex. You can easily invest on the platform and receive a welcome bonus.
Passionate about the crypto world, he explores the blockchain ecosystem to extract the most essential insights. With his expertise in SEO and web writing, he transforms news and technical analysis into clear, engaging, and impactful content. His goal? To help investors better understand the opportunities and challenges of the crypto market.
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